6th Floor
412 Collins Street
Melbourne, Victoria 3000 Australia Telephone:
+61 (0) 2 6076 2336 Email:
info@dartmining.com.au Web:
www.dartmining.com.au
ABN 84 119 904 880
22 October 2015
Dear Shareholder,
It has been a volatile and eventful year for the mining sector and commodity prices generally, over
the last 12 months. It has also been a period of upheaval and change at Dart Mining NL.
The new board was elected by a slim margin at the general meeting in Melbourne on June 18th. Since
then, the new board and management has been working diligently and thoughtfully to re-configure
Dart’s corporate structure and strategic direction.
To those shareholders who supported the election of the new board, we thank you. To those that did
not, we hope over time that we can build your confidence by delivering tangible and positive results.
I encourage anyone who has a gripe or any other query to contact me directly for discussion.
After promising to change focus towards gold exploration and production and away from further
development of the Mt Unicorn Mo Cu project I can report that we have done just that. Planning and
further study of the Mountain View Gold deposit brings us closer to mining the ore and extracting
Gold from this small, but high-grade, deposit. I expect that we will have progressed things
significantly by FYE 2016.
Research into other Gold opportunities – both within Dart’s tenements and beyond - has been
undertaken and the company has assessed quite a number potential projects. Some of these have been
discarded as inappropriate – mainly from an economic point of view but also with an eye to the
future and the available resources with which to manage such projects. Some of these opportunities
have been shortlisted for further investigation and are being actively discussed, but remain at this
stage incomplete and confidential. This does not mean that they will necessarily be concluded
successfully as we employ very strict criteria all of which need to be met before we can proceed.
I am mindful of the seeming lack of news and information that some shareholders have pointed to.
Now that we have progressed various administrative tasks and have a clearer view of steps necessary
for our forward direction I hope to be able to deliver worthwhile news on developments within the
company both good and bad.
The aim of our strategy is to deliver a profitable gold exploration and development company that
over time will grow and deliver intrinsic tangible value to shareholders.
Yours sincerely
James Chirnside
Managing Director, Dart Mining NL
Annual Financial Report
for the financial year ended
30 June 2015
1
Financial
Report
Table of Contents
Directors’ Report
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Auditor’s Report
ASX Additional Information
84 119 904 880
Level 6, 412 Collins Street Melbourne VIC 3000
ABN
Address
Telephone +61 2 6076 2336
Email
Website
info@dartmining.com.au
www.dartmining.com.au
2
17
18
19
20
21
22
23
50
51
53
2
Directors’ Report
The Directors of Dart Mining NL submit their report for the year ended
30 June 2015 and to the date of this report.
Operating and Financial Review
Group overview
Dart Mining NL (Dart) was established in May 2006 with a mandate
to explore and develop base metals and gold properties in north‐east
Victoria and southern New South Wales. The current Board
(appointed June 18 2015) has refocused on these mandated
corporate objectives.
By way of historical perspective and following the 2013 Annual General
meeting, concerns were expressed by shareholders at the direction the
then Board were moving, with activity directed away from the Company’s
core areas of focus at Mt Unicorn and North‐east Victoria.
Shareholder concerns at that time led to a change of Board in
February 2014. Since February 2014, the then new Board re‐
focused its attention on exploration and development of its core
assets in North‐East Victoria. The main area of this focus was the
Mt. Unicorn Mo‐Cu‐Ag project where there was an attempt to
complete a Pre‐feasibility (PFS) study by June 2015. The planned
resource estimation update and 10,000m resource drill program
for the PFS were both differed with approximately 1000m of the
10,000m drill program completed. The Pre‐feasibility study failed
to materialize and the incumbent board was replaced by
shareholder resolution at a general meeting held on 18 June 2015
in Melbourne.
The newly elected board committed to a thorough review of the
business and operations of Dart which it expected to take 12 weeks
to complete. A series of corporate strategy recommendations is
expected to emerge from this review.
Regional exploration
Under the former Directors of the company, Dart’s focus and the vast
majority of expenditure was directed on progressing the Unicorn
Project studies toward a planned PFS report, scheduled for release in
June 2015. The 24 March 2014 $9.9M Strategic Plan outlined a
rejuvenated regional exploration program. However, expenditure on
exploration was minimal with only 9 short RC holes completed for a
total of 332m at the Fairley’s Project (EL4724) and 2 RC holes
completed at Copper Quarry (EL5194) for a total of 474m over the 12
month period.
A number of key targets had previously been identified during the
2013 period, with prospect scale soil sampling traverses and
geological mapping being expanded over that period. Work Plans
for drilling were prepared and approved, but only limited drilling
was actually conducted.
Under the current board, elected June 18 2015, regional exploration
has focused on the key gold prospects of Mountain View, Fairley’s
and Onslow currently held by Dart Mining NL, with additional gold
development targets also being assessed outside current tenement
holdings. The goal of achieving low cost gold production is already
underway and will remain the focus of the company in the medium
term.
Research and development
The Company continued its Research and Development (R&D) program
during the financial year, collecting relevant information, including it in
the Polygonal Vortex Model (PVM), Hybrid Unicorn Henderson Climax
geological model then testing and experimenting with the predictive
capacity of the still developing Model to generate porphyry copper and
molybdenum targets of the Henderson Climax type within the region of
Dart’s exploration assets. Work is ongoing in this important and strategic
arm to the Company’s exploration strategy within NE Victoria, and
ultimately throughout the Lachlan Fold Belt in Eastern Australia. Ways are
presently being sought to potentially commercialise some of the work and
findings so far completed through the company’s R&D activities.
Unicorn Project Update
The Board acknowledges the intrinsic value of the Unicorn Mo‐Cu‐Ag
Project and the associated porphyry potential of the wider tenement
area. The Greenfields discovery of a large, outcropping porphyry deposit
with similarities to the world class Henderson / Climax Primary Mo
deposits in the USA is testament to the quality of the ground originally
selected by Dart Mining. The quality of the deposit and the unique
advantages of existing infrastructure, water and workforce in the region
make Unicorn a potentially high value asset that will be secured for the
future.
The focus of the new Board and the catalyst for the recent 249D request to
remove the previous Board centred around the use of significant company
funds to progress a Prefeasibility Study, funding for which had not been
secured. In a release to the ASX, 24 March 2014, the previous Board
committed to a $9.9M Strategic Plan to progress the Unicorn Project
studies toward a high confidence level Prefeasibility Study (PFS) report
within a 15‐month period. Shareholders were subsequently informed in
the company Annual Report (26 September 2014) that a PFS would be
completed for the Unicorn Project by June 2015. Additional public
reporting around the confidence level (accuracy) of the various studies for
the Unicorn Project were confusing, changing from the industry standard
PFS (Prefeasibility Study) into a Project Study in the 2015 March 31
Quarterly Report and finally into a Project Definition Study (PDS) in the 27
May 2015 ASX release. A PFS is generally accepted as having a +/‐ 25%
level of accuracy for the input data, this allows economic assessments to
be made of projects within this level of confidence.
Following the resignation of the Board and the election of the new Board
at the 18 June General Meeting, a full review of the Unicorn Project was
initiated. The key findings and assumptions around the 27 May 2015 ASX
Announcement concerning the Unicorn Project were documented in a
detailed report by PFS Manager and Metallurgist Colin Seaborn. This
report pulled together the findings and extensive test work conducted as
part of the ongoing study since May 2014. The report was commissioned
by the new Board to clarify the level of accuracy for each aspect of the
various studies undertaken as input into the 27 May ASX
release. Subsequent to financial year‐end 2015, the new Board
commissioned an independent review of the Unicorn Project PFS Update
report by a highly experienced mining engineer, previously responsible
for large scale mine Prefeasibility Studies, one of which was the Spinifex
Ridge Mo‐Cu deposit in Western Australia. This review confirmed the
concerns raised by the current Board that the deposit was not currently
economic and would be unlikely to be economic in the short or medium
term with forecast low molybdenum oxide and copper prices.
The Board are firmly committed to retaining the Unicorn Project and
associated new porphyry mineral district identified by Dart Mining, this
commitment extends to progressing the necessary additional resource
definition drilling and mining studies as funding can be allocated. The
Board consider that the derivation of key financial indicators reported in
the 27 May 2015 ASX release were fundamentally flawed. The most
significant flaw being the escalation of the copper price over the life of the
project to a level beyond any price levels previously recorded.
3
Directors’ Report
Mountain View Project
A scoping level mine design and economic assessment at Mountain
View (ML5559) was commenced immediately following the
appointment of the new Board. The Board recognizes the potential
for low cost gold production from the small Mountain View project,
with further work underway to make a full economic assessment of
the projects viability. Bulk sampling and further metallurgical test
work are planned to provide details around average gold grade and
process recovery in addition to the early metallurgical studies
carried out in 2006.
Onslow Reef Prospect
The historic Onslow Reef workings (EL4726) occur as a small isolated
cluster 8km south of Unicorn and show narrow quartz‐sulphide style
lodes with true width between 0.7 and 1.5m. An expanded soil grid
was completed during the period to test for previously unidentified
mineralisation surrounding the Onslow Reefs and Onslow South
prospects. A number of arsenic anomalies were identified, with the
Onslow South arsenic trend now over 400 m long and open to the
south. The main Onslow Reef shows up to 0.7m @ 51.1 g/t Au and
0.8m @ 17.75 g/t Au from the Main Adit level some 60m below
surface (See DTM Quarterly Report for the period ending December
31 2013). The current Directors are assessing the suitability of the
Onslow Reef for gold development under the new gold production
focus of the company.
Fairley’s Prospect
Dart Mining was the first to recognise a disseminated style of gold
mineralisation within the historic Buckland Goldfield (EL4724). A
small programme of shallow RC Drilling (332m) was completed
during the period to investigate the potential for shallow gold
mineralisation beneath the extensive arsenic anomalies defined
during soil sampling. RC holes up to 66m in depth have tested a short
strike length (70m) along the main Fairley’s Line with assay results
up to 3m @ 18.37 g/t Au in the NE dipping shear and up to 6m @ 2.63
g/t Au in the SW dipping shear structure (See DTM Quarterly Report
for the period ending March 31 2015). The results have highlighted
the near surface potential of the main line, with the significant
parallel and strike extension anomalies yet to be drill tested. This
increased scope of the Fairley’s prospect has provided the current
Directors with adequate encouragement to investigate the potential
for Fairley’s to form part of the gold development strategy currently
underway.
Stacey’s Prospect
The Stacey’s Porphyry Target (EL4726) is a new find, identified during
a regional magnetics and geochemistry review. The identification of a
large As anomaly and associated Au and minor Cu highlights the
expanding porphyry related mineralisation potential of the greater
Corryong area. A 1.6 x 0.8km soil grid has been completed over the
magnetic anomaly, known as Stacey’s. The initial soil grid shows a
large area of highly anomalous arsenic within soils developed above
sediments, the elevated arsenic levels appear to relate to a 1km
circular magnetic high. Several discrete zones of intense arsenic
anomalism with pXRF As > 200ppm are apparent within the wider area
with a coincident gold anomaly up to 76ppb Au and coincident low
level copper. The “South” Au / Cu anomaly is associated with a quartz
feldspar porphyry dyke which may be related to an interpreted deeper
intrusive, reflected in the magnetics data. The Stacey’s prospect
represents a longer term gold development target and will require
significant further exploration, including drilling, to test the gold
potential of the area. (See DTM Quarterly Report for the period ending
December 31 2014).
4
Directors’ Report
Financial overview
Operating results for the year
The loss for the consolidated entity after income tax was $3,146,130
(2014: $1,060,846). This result is consistent with expectations of costs
associated with the exploration and development programs budgeted
and undertaken that reflect:
• costs associated with managing the exploration program;
• reduced activity on research and development exploration
expenditure associated with the Polygonal Vortex Model; and
• corporate overheads associated with statutory and regulatory
requirements as a consequence of being listed on the Australian
Securities Exchange.
Review of financial position
At the end of the financial year, a proportion of the funds raised in prior
financial years were held by the Group as cash investments for use in
future financial periods. The Group strives to maximise the return on
these funds for exploration purposes by investing surplus funds and
minimising expenditure on corporate overheads.
Cash flows
The cash flows of the Group consist primarily of payments to suppliers
and employees used in advancing the Unicorn Project, together with
payments both for exploration activities on tenements held by the Group
and the maintenance of the corporate head office. Primarily, head office
manages existing projects as well as costs involved in investigating new
exploration opportunities.
Capital raising and capital structure
During the year under review, the Group raised $1,068,750 (net of
capital raising costs) through the issue of 36,166,667 ordinary shares
(2014: Nil; Nil ordinary shares).
Information on Directors
The names and details of the Company’s Directors in office during the
financial year and until the date of this report are as follows. Directors
were in office for this entire period unless otherwise stated.
Names, qualifications, experience and special
responsibilities
James Chirnside Chairman / Managing Director
Appointed 18 June 2015
James Chirnside has been involved in financial and commodity markets over a
thirty--‐year period. Before studying at Edith Cowan University in Western
Australia James worked for Mt Newman Mining in the Pilbara as a geologist’s
assistant.
During the early part of his formal career he worked for global commodity
trading house Bunge where he traded in a range of food, fiber, steel and metal
commodities. James went on to run the overnight commodity--‐trading desk in
Melbourne for Bell Commodities where mining clients would hedge metal
production on the London Metal Exchange. James worked for Investment Bank
County NatWest in London where during the first gulf war he traded crude oil
for the firm. James then moved to Hong Kong with Regent Pacific Group
where he was responsible for resources investment across Asia Pacific as well
as the firm’s proprietary activities in base and precious metals trading.
Since returning to Australia and establishing his own asset management
company in 2002, James has been involved in investment across the Asia
Pacific region.
In 1994 James’ Regent Pacific Hedge fund was ranked 1st in the world by S&P
Micropal for Emerging Market Funds.
In 2006 James was awarded 1st place in the Australian Hedge Fund awards for
best performing fund.
In 2008 James’ fund was ranked 1st place out of 495 funds investing across the
Asia Pacific region and returned 30% for investors that year.
Other current directorships of listed companies
Mercantile Investments Ltd
WAM Capital Ltd
Cadence Capital Ltd
Ask Funding Ltd
Former directorships of listed companies in the last three years
Murchison Metals Ltd
Luke Robinson Non‐executive Director
Appointed 18 June 2015
Luke Robinson has worked in Financial Markets for 20 years with a number of
stockbroking and advisory firms including Phillip Capital and Citi Group.
Recently he has worked as an executive director of Melanesian Exploration, a
privately held company, where he was responsible for researching, identifying
and acquiring mainly petroleum assets in Papua New Guinea. Luke was a
senior client advisor with Philip Capital where he was responsible for advising
Institutional and Sophisticated individual investors in the Australian share
market. Luke’s main focus was in resources companies including mining and
energy where he originated and distributed capital raisings for small and mid-
sized companies. Luke holds a B. Sc. in Microbiology from the University of
Melbourne.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
5
Directors’ Report
Russell Simpson Non-executive Director
Appointed 18 June 2015
Russell Simpson has been a successful Riverena Farmer, Merino
breeder and irrigator from two Murray River water irrigation schemes
for over 40 years. Taking a keen interest in commodity markets,
particularly agricultural, gold and metals for the past 20 years, he has
been an investor in Dart Mining since 2008 and a substantial
shareholder since 2009.
Other current directorships of listed companies
None.
Bruce J Paterson Former Chairman
Appointed 7 February 2014, Resigned 18 June 2015
Bruce has a law degree from Melbourne University and extensive
commercial, legal, public company director and company secretarial
experience relating primarily to ASX listed companies and their subsidiaries
in Australia and internationally.
Bruce was Chairman of the Remuneration and Nomination Committee and a
member of both the Audit and Risk Management Committee and the
Technical Committee.
Bruce is a member of the Australian Institute of Company Directors.
Former directorships of listed companies in last three years
None.
Other current directorships of listed companies
None.
Meredith Lyons Alternate Non-executive Director
Appointed 23 June 2015
Meredith was appointed as an alternate Director by Russell Simpson to
act on his behalf when he is not able to exercise his powers as a
Director. Her appointment will continue until Mr Simpson revokes it or
ceases to be a Director, whichever occurs first.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Julie Edwards CFO and Company Secretary
Appointed 1 July 2015
Julie Edwards was appointed as the Chief Financial Officer of Dart on 8
July 2015. She has had over 20 years’ experience and involvement in
the management of accounting and finance functions. She holds a
Bachelor of Commerce degree, is a member of CPA Australia, holds a
CPA Public Practice Certificate and is a registered Tax Agent.
John M Nethersole CFO and Company Secretary
Appointed 20 May 2014; Retired July 2015
John joined Dart on 28 April 2014 and was appointed Company
Secretary and CFO on 20 May 2014. He holds a Bachelor of Business
Studies degree and is a member of the Chartered Accountants in New
Zealand. John resigned as CFO and Company Secretary in July 2015.
Former directorships of listed companies in the last three years
None.
Robert A Hogarth Former Non-executive Director
Appointed 7 February 2014, Resigned 18 June 2015
Rob has an economics degree from Sydney University and is a Fellow of the
Institute of Chartered Accountants in Australia, he built his mining industry
expertise during a 37 year career with KPMG where he was the leader of its
Energy and Natural Resources and Major Projects Advisory Practices and lead
partner for many of the firm’s listed mining clients
Rob was been appointed both Chairman of the Audit and Risk Management
Committee and a member of the Remuneration and Nomination Committee.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
Dr John W Cottle Former Non-executive Director
Appointed 20 May 2014, Resigned 18 June 2015
John has over 40 years experience in the exploration and mining resource
industries both in Australia and internationally. He brings extensive knowledge
and experience in large and small scale projects and regional exploration to the
Company. This experience has been applied in disciplines encompassing
geology, resource and reserve estimation, selective mining, geo-metallurgy and
valuation. John received his PhD. in Economic Geology and Geostatistics in
1976. In roles such as Managing Director, CEO and COO, he has managed
corporations, implemented strategic development and conducted corporate and
equity financing.
John was appointed Chairman of the Technical Committee.
Other current directorships of listed companies
None.
Former directorships of listed companies in last three years
None.
6
Directors’ Report
Shareholdings of directors and other key
management personnel
The interests of each director and other key management personnel, directly
and indirectly, in the shares and options of Dart Mining NL at the date of this
report are as follows
Principal activities
Principal activities of the Dart Mining Group during the financial year were
to conduct a PFS of the development of its Unicorn Project, containing
molybdenum, copper and silver, and continue exploration for base metals
and gold in north-east Victoria whilst also evaluating opportunities to
expand its footprint to other regions of Australia and abroad.
Key management
personnel
Ordinary
shares
Incentive rights and
options over ordinary
shares(unlisted)
R M Simpson 24,728,979
D G Turnbull
4,459,179
-
2,000,000
Corporate information
Corporate structure
Dart Mining NL is a no liability company limited by shares that is
incorporated and domiciled in Australia. Dart Mining NL has prepared a
consolidated financial report incorporating Dart Resources Pty Ltd, Mt
Unicorn Holdings Pty Ltd and Mt View Holdings Pty Ltd all of which
were controlled by the Company (comprising the Group) during the
financial year and are included in the financial statements.
Employees
The Company had 11 employees as at 30 June 2015 (2014: 4
employees).
Dividend
No dividends in respect of the current financial year have been paid,
declared or recommended for payment.
Summary of shares and options on issue
At 30 June 2015 the Group has 243,257,982 ordinary shares and 15,473,048
unlisted options and incentive rights on issue. Details of the options and
incentive rights are as follows:
Issuing entity
shares under option
Class of shares
Number of
Exercise price
(cents)
Expiry date
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
Dart Mining NL
100,000
100,000
3,000,00
3,000,00
4,273,04
1,000,00
0
2,000,00
400,000
1,600,00
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
18
22
15
15
11.1
11.1
11.1
3
6
20 March 2017
20 March 2017
31 December 2015
31 December 2016
7 May 2016
30 August 2016
31 December 2016
31 December 2017
31 December 2017
The company issued 36,166,667 ordinary shares on 3 September 2014 and no options were exercised since the end of the financial year.
7
Directors’ Report
During the financial year, the following incentive rights were granted to a
Key Management Personnel of the Company:
Key management
personnel
Issuing entity Number of incentive
rights granted
J Nethersole
Dart Mining NL
J Cornelius
Dart Mining NL
D G Turnbull
Dart Mining NL
250,000
750,000
250,000
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group
during the financial year.
Significant events after balance date
The Company has received from AusIndustry a Certificate of Finding in
relation to the Company’s R & D claims for the years 2011/12, 2012/13.
The Certificate of Finding sets out a preliminary view of AusIndustry that
the full amount of the Tax Offset is potentially repayable by the Company.
In response to the Certificate of Finding, the Company has submitted an
application for internal review by a new assessor at AusIndustry, and
engaged International Technology Group (ITG), a leading professional
advisory firm specialising in R & D matters, to assist it.
Future developments, prospects and business
strategies
The Board of Directors intends to continue with the exploration of the
Group’s tenements and focus on the Unicorn Project. Further details of the
Group’s prospects are included in the Exploration Report.
As the Group is listed on the Australian Securities Exchange, it is subject to
the continuous disclosure requirements of the ASX Listing Rules which
require immediate disclosure to the market of information that is likely to
have a material effect on the price or value of Dart Mining NL’s securities.
The Board of Directors believe they have been compliant with the
continuous disclosure requirements throughout the reporting period and to
the date of this report.
Environmental regulation
The economic entity holds participating interests in a number of exploration
tenements. The various authorities granting such tenements require the
tenement holder to comply with the terms of the grant of the tenement and all
directions given to it under those terms of the tenement. There have been no
known breaches of the tenement conditions and no such breaches have been
notified by any government agencies during either the year ended 30 June
2015 or at the date of this report.
Directors and committee meetings
The Board of Directors established the Audit and Risk Management
Committee on 9 May 2007. The charter for the Audit and Risk Management
Committee was adopted on 12 July 2007 (revised 17 June 2014). The
members of the Committee consist of James Chirnside, Luke Robinson and
Russell Simpson. Robert Hogarth and Bruce Paterson resigned during the
year.
The Board of Directors established the Remuneration and Nomination
Committee on 5 December 2012. The charter for the Remuneration and
Nomination Committee was adopted on 19 February 2013 (revised on 17 June
2014). The members of the Committee consist of James Chirnside, Luke
Robinson and Russell Simpson. Bruce Paterson and Robert Hogarth resigned
during the year.
The Board of Directors established the Technical Committee on 18 February
2014. The charter for the Technical Committee was adopted on 17 June 2014.
The members of the Committee consist of James Chirnside, Luke Robinson
and Russell Simpson. John Cottle and Bruce Paterson resigned during the
year.
8
Directors’ Report
The number of Directors and Committee meetings held during the year and the numbers of meetings attended by each Director and Committee member
were as follows:
Directors
Held
Entitled
to attend
Attended
Held
Entitled
to attend
Attended
Board of Directors
Audit and Risk Management Committee
J Chirnside
L Robinson
R Simpson
B J Paterson
R A Hogarth
J W Cottle
12
12
12
12
12
12
1
1
1
11
11
11
1
1
1
11
11
10
3
3
3
3
3
3
-
-
-
3
3
-
-
-
-
3
3
-
Directors
Held
Entitled to
attend
Attended
Held
Entitled to
attend
Attended
Remuneration and Nomination Committee
Technical Committee
J Chirnside
L Robinson
R Simpson
B J Paterson
R A Hogarth
J W Cottle
3
3
3
3
3
3
-
-
-
3
3
-
-
-
-
3
3
-
3
3
3
3
3
3
-
-
-
3
1
3
-
-
-
3
1
3
9
Directors’ Report
Indemnification and insurance of directors and
officers
The Company has entered into Deeds of Indemnity with the Directors and
Officers of the Company, indemnifying them against certain liabilities and
costs to the extent permitted by law.
The Company has also agreed to pay a premium in respect of a contract
insuring the directors and officers of the Company. Full details of the cover
and premium are not disclosed as the insurance policy prohibits the
disclosure.
Proceedings on behalf of the Company
No persons have applied for leave of a Court to bring proceedings on behalf
of the Company or intervene in any proceedings to which the Company is a
party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings. The Company was not a party to any
such proceedings during the year.
Non-audit services
The directors are satisfied that the provision of non-audit services during the
year by the auditor (or by another person or firm on the auditor’s behalf) is
compatible with the general standards of independence for auditors imposed
by the Corporations Act 2001.
Auditor independence declaration
The auditor’s independence declaration for the year ended 30 June 2015
has been received and is included in this report.
Remuneration Report - Audited
This remuneration report, which forms part of the Directors’ report, sets out
information about the remuneration of the Group’s directors and other key
management personnel for the financial year ended 30 June 2015. The
prescribed details for each person covered by this report are detailed below.
Details of Directors and other Key
Management Personnel
Directors and other key management personnel of the Group during and
since the end of the financial year are as follows:
Directors
J Chirnside (appointed 18 June 2015)
L Robinson (appointed 18 June 2015)
R Simpson (appointed 18 June 2015)
B J Paterson (resigned 18 June 2015)
R A Hogarth (resigned 18 June 2015)
J W Cottle (resigned 18 June 2015)
Other Key Management Personnel
D G Turnbull
J M Nethersole (retired July 2015)
J W Cornelius (retired 25 June 2015)
J Eltham Project Director-AJE Project Development Consultancy Pty Ltd
(retired 31 August 2014).
Remuneration philosophy
The Board of Directors of Dart Mining NL is responsible for determining
and reviewing compensation arrangements for the Directors, the Managing
Director and other key management personnel after consideration is given to
the recommendations of the Company’s Remuneration and Nomination
Committee. The Remuneration and Nomination Committee’s policy is to
ensure that a remuneration package properly reflects the person’s duties and
responsibilities, with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality Board and executive
team. The Board of the Company reviews and adopts or amend the
recommendations of the Remuneration and Nomination Committee as
proposed. The officers of the Company are given the opportunity to receive
their base emolument in a variety of forms, including cash, fringe benefits
such as motor vehicles and incentive rights. It is intended that the manner of
payment chosen will be optimal for the recipient without creating undue cost
to the Group.
To assist in achieving these objectives, the Board’s objective is to link
the nature and amount of Directors and other key management
personnel emoluments to the Company’s financial and operational
performance. It is the Board’s policy that employment contracts are
entered into with all senior executives. At the date of this report,
executive remuneration is set at levels approved by the Board. The
Board has implemented these guaranteed levels of remuneration which are
not dependent on performance in order to ensure the Group’s ability to retain
quality personnel.
Employment Agreements are entered into with Executive Directors and
specified executives.
10
Directors’ Report
The Group’s earnings and movements in shareholders’ wealth for the last 6 financial years to 30 June 2015 is detailed in the following table:
30 June 2015
30 June 2014
30 June 2013
30 June 2012
30 June 2011
30 June 2010
Revenue
95,408
$2,167,529
$4,612,093
$80,135
$42,893
$16,679
Net profit/( loss) after tax
(3,146,130)
($1,060,846)
$55,567
Share price at start of year (cents)
Share price at end of year (cents)
Dividends
Basic earnings per share (cents)
Diluted earnings per share (cents)
1.6
1.2
-
(1.33)
(1.33)
7
1.6
-
(0.51)
(0.51)
10
7
-
0.03
0.03
($2,968,386
)
6
10
-
(1.98)
(1.98)
($526,388)
($844,916)
11
6
-
(0.51)
(0.51)
8
11
-
(1.32)
(1.32)
The remuneration of Non‐executive Directors for the financial
year ended 30 June 2015 is detailed in this report.
Senior executive remuneration
Objective
The Board aims to reward Executives with a level and mix of
remuneration commensurate with their position and responsibilities
within the Company and so as to:
• reward Executives for Company, business unit and
individual performance against targets set by reference to
appropriate benchmarks;
• align the interests of Executives with those of shareholders;
• link reward with the strategic goals and performance of the
Company; and
• ensure total remuneration is competitive by market standards.
Structure
In determining the level and make‐up of executive remuneration,
the Board obtained independent advice from external
consultants
on market levels of remuneration for comparable executive roles. It
is
the Board’s policy that employment contracts are entered into
with all senior executives.
Remuneration structure
In accordance with best practice corporate governance, the structure of
non‐executive and executive director remuneration is separate and
distinct.
Non‐executive director remuneration
Objective
The Board seeks to set aggregate remuneration at a level which
provides the Company with the ability to attract and retain directors of
the highest calibre at a cost that is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate
remuneration of Non‐executive Directors shall be determined from
time to time by a general meeting of the Company’s shareholders. An
amount not exceeding the sum determined is then divided between
the directors as agreed whilst maintaining a surplus amount that can
be attributed to additional Non‐executive Directors should they be
appointed at any time. The latest determination was sought and
granted at the Company’s AGM on 2 October 2012 whereby
shareholders approved an aggregate remuneration of $475,000 per
year: an increase from the previous aggregate remuneration amount
of $200,000 per year which was set with the adoption of the
Company’s constitution on 22 June 2006.
The amount of aggregate remuneration sought to be approved by
shareholders and the manner in which it is apportioned amongst
directors is reviewed annually. The Board considers advice from
external consultants as well as the fees paid to Non‐executive
Directors of comparable companies when undertaking the annual
review process.
Each Non‐executive Director receives a fee for being a Director of the
Group. Directors who are called upon to perform extra services
beyond the Director’s ordinary duties or who are members of Board
Committees may be paid additional fees for those services.
11
Directors’ Report
Service contracts
Service contracts were entered into with Executive Directors and
Specified Executives.
Other Key Management Personnel
All other KMP have rolling contracts with standard termination provisions
as follows:
Notice
period
Payment
in lieu of
notice
Treatment of STI
on termination
Resignation
1 - 3 months
1 - 3 months
Termination for
cause
1 month
1 month
3 months
3 months
Termination
in cases of
disablement,
redundancy or
notice without
cause
Unvested awards
forfeited
Unvested awards
forfeited. Claw back
of deferred STI
payments at the
Board’s discretion
Claw back of
deferred STI
payments at the
Board’s discretion
Managing Director
The terms of an employment agreement with the MD, James
Chirnside, issued on 19 June 2015 include inter alia:
• A fixed remuneration package of $150,000 plus superannuation per
annum, and director’s fees of $30,000 plus Superannuation whilst
engaged as a director of Dart Mining NL.
• Reimbursement of all business related expenses and a motor vehicle
for business use and reasonable private use or a reasonable allowance
should he provide his own motor vehicle to perform work for Dart.
• The agreement can be terminated by either party upon 3 months’
notice being given.
Chief Executive Officer
The terms of an employment agreement with the CEO, John
Cornelius, issued on 1 July 2014 include inter alia:
• A fixed remuneration package of $262,800 per annum, together with
reimbursement of all business related expenses including motor
vehicle expenses reimbursed at the rate designated by the Australian
Taxation Office;
• Performance bonus target which is based on specific performance
criteria related to the Group’s capacity to complete the Unicorn
Project PFS; and
• The agreement was terminated on 25 June 2015. On termination,
unvested STI awards are forfeited.
Dean G Turnbull
The terms of an employment agreement with Dean Turnbull include
inter alia:
• A remuneration package of $165,880 plus Superannuation per annum,
with annual reviews, together with reimbursement of all business
related expenses including motor vehicle running and maintenance
expenses plus statutory annual leave entitlements;
• A restraint on Dean undertaking additional part‐time consulting or
provision of other services which may conflict with the activities
of Dart without the approval of the Chairman which may not be
unreasonably withheld. This restraint continues for 12 months after
cessation of engagement with the Company;
• The agreement can be terminated by either party upon 3 months
notice being given; and
• A bonus may be paid to Dean at the sole discretion of the Board
which is based on certain performance criteria being exceeded for
any pre‐determined period.
12
Directors’ Report
Remuneration of directors and other key management personnel for the year ended 30 June 2015
Short term benefits
Post employment
benefit
s
Long term
benefits
Share-
based
payments
Termination
payments
Total Percentage
of share-
based
payments
Salaries,
fees and
leave
$
2015
Executive Directors
James Chirnside
Non-executive Directors
Current
Luke Robinson
Russell Simpson
Former
Bruce J Paterson
Rob A Hogarth
John W Cottle
-
-
-
85,631
46,753
58,384
Other key management personnel
Dean G Turnbull
John M Nethersole
John W Cornelius
J Eltham
172,260
174,018
236,971
1,800
775,817
Cash
bonus
Non-
monetary
benefits
Superannuation
Annual
leave
Options/
Incentive
rights
$
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
8,175
4,442
5,546
16,365
30,375
35,000
-
99,903
$
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
6,450
1,850
6,450
-
14,760
$
$
%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.00%
0.00%
0.00%
0.00%
93,806
51,195
63,930
0.00%
0.00%
0.00%
3.31%
0.90%
2.32%
0.00%
195,075
206,243
278,421
1,800
890,470
13
Directors’ Report
Short term benefits
Post employment
benefits
Long term
benefits
Share-
based
payments
Termination
payments
Total Percentage
of share-
based
payments
Salaries,
fees and
leave
Cash
bonus
Non-
monetary
benefits
Superannuation
Annual
leave
Options/
Incentive
rights
2014
$
$
$
$
$
Executive Directors
Lindsay J Ward
(resigned)
147,592
100,000
5,894
22,296
8,463
Non-executive Directors
Current
Bruce J Paterson
Rob A Hogarth
John W Cottle
Former
Christopher J Bain
Stephen G Poke
Richard G Udovenya
33,985
18,543
55,667
56,184
37,269
31,933
Other key management personnel
A J Draffin
(resigned)
56,934
-
-
-
-
-
-
-
Dean G Turnbull
169,726
50,000
John M Nethersole
John W Cornelius
John Eltham
23,005
99,000
189,116
-
-
-
560
306
847
919
603
520
859
3,662
382
1,494
2,854
3,144
1,715
490
4,696
2,722
2,508
-
15,344
2,345
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
7,600
-
-
-
$
$
%
112,240
396,485
0.00%
-
-
-
-
-
-
-
-
-
-
-
37,689
20,564
57,004
61,799
40,594
34,961
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
57,793
0.00%
246,332
25,732
100,494
191,970
3.13%
0.00%
0.00%
0.00%
918,954
150,000
18,900
55,260
8,463
7,600
112,24
1,271,417
Bonuses
No cash bonuses were granted to Executive Directors during the financial year ended 30 June 2015 (2014: $150,000).
14
Directors’ Report
Employee options
At the end of the financial year, the following share-based payment arrangements were in existence:
Grantee
Number
Grant date
Expiry date
Exercise price
(cents)
Fair value at
grant date
(cents)
Vesting date
C J Bain
C J Bain
J Cornelius
S Dunn
S Dunn
S G Poke
S G Poke
J Nethersole
N Purden
N Purden
R G Udovenya
R G Udovenya
D G Turnbull
D G Turnbull
1,000,000
1,000,000
750,000
200,000
200,000
1,000,000
1,000,000
250,000
200,000
150,000
1,000,000
1,000,000
2,000,000
250,000
5 Nov 2012
31 Dec 2015
5 Nov 2012
31 Dec 2016
01 Jan 2015
31 Dec 2017
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
5 Nov 2012
31 Dec 2015
5 Nov 2012
31 Dec 2016
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
18 Dec 2014
31 Dec 2017
5 Nov 2012
31 Dec 2015
5 Nov 2012
31 Dec 2016
18 Dec 2014
31 Dec 2016
18 Dec 2014
31 Dec 2017
15
15
.06
.03
.06
15
15
.06
.03
.06
15
15
.11
.06
4.600
5.390
0.860
1.180
0.740
4.600
5.390
0.740
1.180
0.740
4.600
5.390
0.230
0.740
5 Nov 2012
5 Nov 2012
01 Jan 2015
18 Dec 2014
18 Dec 2014
5 Nov 2012
5 Nov 2012
18 Dec 2014
18 Dec 2014
18 Dec 2014
5 Nov 2012
5 Nov 2012
31 Dec 2014
18 Dec 2014
These options and incentive rights are not quoted, not transferrable and may be exercised at any time after vesting date.
Upon the grant of 2,000,000 options to D Turnbull 2,000,000 incentive rights with an exercise price of 11 cents, expiring 31 December 2016 were
cancelled.
15
Directors’ Report
The following table summarises the value of remuneration options and incentive rights granted, exercised or lapsed during the year:
D G Turnbull
Value of incentive rights
granted
Value of options
exercised
Value of options
cancelled
Value of options
lapsed at lapse date
$
-
$
-
$
7,600
$
-
This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001.
James Chirnside
Chairman
Melbourne
30 September 2015
Luke Robinson
Director
Russell Simpson
Director
16
Corporate Governance Statement
The Board of Directors of Dart Mining NL (the Company) is responsible for establishing the corporate governance framework of the Group having
regard to
the ASX Corporate Governance Council (CGC) published guidelines as well as its corporate governance principles and recommendations. The Board guides
and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable.
The Company’s corporate governance statement for 2015 is located on the Company’s website at www.dartmining.com.au - Our Company – Corporate
Governance.
17
Auditor's Independence Declaration
18
Consolidated Statement of Comprehensive Income
For the financial year ended 30 June 2015
Continuing operations
Revenue
Consultancy fees
Professional fees
Share based payments
Employee benefits expense
Exploration costs written-off
Research and development expense
Depreciation and amortisation expense
Other expenses
Office expenses
Administrative expenses
Travel related expenses
Expenses
Profit/(loss) before income tax expense
Income tax expense
Profit/(loss) for the year
Other comprehensive income
Items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss
Other comprehensive income for the year
Total comprehensive income for the year
Attributable to:
Net profit/(loss) attributable to
Members of the parent entity
Non-controlling interests
Total comprehensive income
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents)
Diluted earnings per share (cents)
The accompanying notes form part of these financial statements
Consolidated Group
2015
$
2014
$
95,408
(165,074)
(212,385)
(22,060)
(658,959)
(1,389,454)
(464,108)
(1,296)
-
(47,175)
(241,083)
(39,944)
(3,241,538)
(3,146,130)
-
2,167,529
(275,725)
(133,678)
(43,600)
(685,997)
(1,022,549)
(798,585)
(173)
(48,614)
(37,981)
(174,939)
(6,534)
(3,228,375)
(1,060,846)
-
(3,146,130)
(1,060,846)
-
-
-
-
-
-
-
-
(3,146,130)
(1,060,846)
-
-
(3,146,130)
(1,060,846)
(1.33)
(1.33)
(0.51)
(0.51)
Note
4
5
6
9
9
19
Consolidated Statement of Financial Position
As at 30 June 2015
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Other non-current assets
Deferred exploration and evaluation costs
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained earnings
TOTAL EQUITY
The accompanying notes form part of these financial statements
Consolidated
30 June 2015
Note
$
30 June 2014
$
10
11
15
13
15
14
16
17
17
18
27
1,167,087
50,427
72,289
1,289,803
106,860
76,532
7,393,445
7,576,837
8,866,640
301,800
46,312
348,112
458
458
348,570
8,518,070
18,379,349
386,158
(10,247,437)
8,518,070
3,583,741
95,264
25,343
3,704,348
19,526
99,840
7,030,130
7,149,496
10,853,844
241,661
38,793
280,454
-
280,454
10,573,390
17,310,599
371,698
(7,108,907)
10,573,390
20
Consolidated Statement of Changes in Equity
For the financial year ended 30 June 2015
Consolidated
Balance at 1 July 2013
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
Ordinary share
capital
Option reserve
Accumulated
losses
$
$
$
Total
$
17,310,599
336,448
(6,056,411)
11,590,636
-
-
-
-
-
-
-
-
-
-
-
43,600
(8,350)
-
-
35,250
(1,060,846)
(1,060,846)
-
-
(1,060,846)
(1,060,846)
-
8,350
-
-
8,350
43,600
-
-
-
43,600
Balance at 30 June 2014
17,310,599
371,698
(7,108,907)
10,573,390
Balance at 1 July 2014
Comprehensive income
Profit/(loss) for the year
Other comprehensive income for the year
Total comprehensive income for the year
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued
Fair value of lapsed options transferred
Shares issued during the year
Capital raising costs
Total transactions with owners and other
transfers
17,310,599
371,698
(7,108,907)
10,573,390
-
-
-
-
1,085,000
(16,250)
1,068,750
-
-
-
22,060
(7,600)
-
-
14,460
(3,146,130)
(3,146,130)
-
-
(3,146,130)
(3,146,130)
-
7,600
-
-
7,600
22,060
-
1,085,000
(16,250)
1,090,810
Balance at 30 June 2015
18,379,349
386,158
(10,247,437)
8,518,070
The accompanying notes form part of these financial statements
21
Consolidated Statement of Cash Flows
For the year ended 30 June 2015
Note
Consolidated
2015
$
Cash flows from operating activities
Other income
Research and development grant received
Interest received
Payments to suppliers and employees
Net cash provided by/(used in) operating activities
22a
Cash flows from investing activities
Payments for exploration costs
Purchase of property, plant and equipment
Payments for investments
Security deposits refunded (held)
2,916
-
99,068
(1,749,768)
(1,647,784)
(1,745,805)
(115,123)
-
23,307
2014
$
-
2,033,411
155,838
(2,024,196)
165,053
(2,276,321)
(4,741)
(37,500)
(10,581)
Net cash provided by/(used) in investing activities
(1,837,621)
(2,329,143)
Cash flows from financing activities
Proceeds from issue of ordinary shares
Payment of share issue costs
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Cash and cash equivalent at the beginning of the financial year
Cash and cash equivalent at the end of the financial year
10
The accompanying notes form part of these financial statements
1,085,000
(16,250)
1,068,750
-
-
-
(2,416,655)
(2,164,090)
3,583,741
1,167,087
5,747,831
3,583,741
22
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 1 Corporate information
The consolidated financial statements of Dart Mining NL and its
subsidiaries (collectively, the Group) for the year ended 30 June 2015 were
authorised for issue in accordance with a resolution of the Directors on 30
September 2015.
Dart Mining NL (the Company or the parent) is a for profit company limited
by shares incorporated in Australia whose shares are publicly traded on
the Australian Stock Exchange.
The nature of the operations and principal activities of the Group are
described in the Directors’ Report. Information on the Group’s structure is
provided in Note 12. Information on other related party relationships is
provided in Note 25.
Note 2 Summary of significant accounting policies
Basis of preparation
These financial statements are general-purpose financial statements which
have been prepared in accordance with the Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board and the
Corporations Act 2001
Australian Accounting Standards set out accounting policies that the
Australian Accounting Standards Board has concluded would result
in
financial statements containing relevant and reliable information
about transactions, events and conditions. Compliance with Australian
Accounting Standards ensures that the financial statements and
notes also comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board. Material
accounting policies adopted in the preparation of the financial statements
are presented below and have been consistently applied unless stated
otherwise.
Except for cash flow information, the financial statements have been
prepared on an accrual basis and are based on historical costs, modified
where applicable by the measurement at fair value of selected non-current
assets, financial assets and financial liabilities.
(a) Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities and
results of entities controlled by Dart Mining NL at the end of the reporting
period. A controlled entity is any entity over which Dart Mining NL has the
ability and right to govern the financial and operating policies so as to obtain
benefits from the entity’s activities.
The result of subsidiaries acquired or disposed of during the year are included in
the consolidated statement of comprehensive income from the effective date of
acquisition or up to the effective date of disposal, as appropriate. A list of
controlled entities is contained in Note 12 to the financial statements.
In preparing the consolidated financial statements, all intra-group balances and
transactions between entities in the consolidated group have been eliminated in
full.
(b) Income tax
The income tax expense (income) for the year comprises current income tax
expense (income) and deferred tax expense/ (income).
Current income tax expense charged to profit or loss is the tax payable on
taxable income. (Current tax liabilities)/assets are measured at the amounts
expected to be paid to/ (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax assets and
deferred tax liability balances during the year and unused tax losses.
Current and deferred income tax expense/ (income) is charged or credited
outside profit or loss when the tax relates to items that are recognised
outside profit or loss.
Except for business combinations, no deferred income tax is recognised
from the initial recognition of an asset or liability, where there is no effect
on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are
expected to apply to the period when the asset is realised or the liability is
settled. Their measurement also reflects the manner in which management
expects to recover or settle the carrying amount of the related asset or
liability. With respect to non-depreciable items of property, plant and
equipment measured at fair value and items of investment property
measured at fair value, the related deferred tax liability or deferred tax asset
is measured on the basis that the carrying amount of the asset will be
recovered entirely through sale.
Deferred tax assets relating to temporary differences and unused tax losses
are recognised only to the extent that it is probable that future taxable profit
will be available against which the benefits of the deferred tax asset can be
utilised.
Where temporary differences exist in relation to investments in subsidiaries,
branches, associates and joint ventures, deferred tax assets and liabilities are
not recognised where the timing of the reversal of the temporary difference
can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right
of set-off exists and it is intended that net settlement or simultaneous
realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where : (a) a legally enforceable
right of offset exists; and (b) the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset
and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
23
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Acquisition
(c) Property, plant and equipment
i)
Items of property, plant and equipment are initially recorded at cost
net of GST and depreciated as outlined below.
ii) Depreciation of property, plant and equipment
Property, plant and equipment are depreciated on a straight line basis
at rates based upon the expected useful lives of these
assets. The useful lives of these assets are detailed in Note 13 to the
financial statements.
iii) Disposal
The gain or loss arising on disposal or retirement of property, plant or
equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in
profit and loss.
iv) Subsequent measurement
Property, plant and equipment are subsequently measured at
amortised cost. Amortised cost is calculated as the amount at
which the asset is measured at initial recognition less any
depreciation or impairment.
(d) Deferred exploration and evaluation
In accordance with AASB 6 Exploration For and Evaluation of Mineral
Resources, exploration and evaluation expenditure incurred is accumulated
in respect of each identifiable area of interest. Other than Research and
Development costs (see Note 2 (e)) these costs are only carried forward to
the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached
a stage which permits reasonable assessment of the existence of
economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full
against operating results in the year in which the decision to abandon the
area is made.
When production commences, the accumulated costs for the relevant area of
interest are amortised over the life of the area according to the rate of
depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the
appropriateness of continuing to carry forward costs in relation to that area
of interest.
Costs of site restoration are provided over the life of the facility from when
exploration commences and are included in the costs of that stage. Site
restoration costs include the dismantling and removal of mining plant,
equipment and building structures, waste removal and rehabilitation of the
site in accordance with the clauses of the mining permits. Such costs are
determined using estimates of future costs, current legal requirements and
technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted for on a prospective
basis. In determining the costs of site restoration there is uncertainty
regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs are determined on
the basis that restoration will be completed within one year of abandoning a
site.
(e) Research and development costs
Research costs relating to the development of exploration models are
expensed as incurred.
This is a change in accounting policy from 1 June 2013 as previously
research costs had been carried forward as deferred exploration and
evaluation expenditure. The impact of this change is a $1,987,204 reduction
in assets and increase in accumulated losses. The reason for the change is
the new policy better reflects the nature of this expenditure and better
matches the recognition of related Government Grants (see Note 2(s)).
(f) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity
becomes a party to the contractual provisions to the instrument. For
financial assets, this is equivalent to the date that the Company commits
itself to either the purchase or sale of the asset (i.e. trade date accounting
is adopted).
Financial instruments are initially measured at fair value plus transaction
costs except where the instrument is classified at fair value through profit
or loss in which case transaction costs are expensed to profit or loss
immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at fair value,
amortised cost using either the effective interest method or cost
Amortised cost is calculated as the amount at which the financial
assets or financial liability is measured at initial recognition less
principal repayments, any reduction for impairment and adjusted
for any cumulative amortisation of the difference between that
initial amount and the maturity amount calculated using the
effective interest method.
Fair value is determined based on current bid prices for all
quoted investments. Valuation techniques are applied to determine
the fair value for all unlisted securities, including recent arm’s length
transactions, by reference to similar instruments and option pricing
models.
The effective interest method is used to allocate interest income
or interest expense over the relevant period and is equivalent
to the rate that discounts estimated future cash payments or
receipts (including fees, transaction costs and other premiums or
discounts) over the expected life (or when this cannot be reliably
predicted, the contractual term) of the financial instrument to the
net carrying amount of the financial asset or financial liability.
Revisions to expected future net cash flows will necessitate
an adjustment to the carrying amount with a consequential
recognition of an income or expense item in profit or loss.
The Group does not designate any interests in subsidiaries,
associates or joint venture entities as being subject to the
requirements of accounting standards specifically applicable to
financial instruments.
(i) Loans and receivables
Loans and receivables are non‐derivative financial assets with
fixed or determinable payments that are not quoted in an active
market and are subsequently measured at amortised cost. Gains
or losses are recognised in profit or loss through the
amortisation process and when the financial asset is de‐
recognised.
(ii) Held‐to‐maturity investments
Held‐to‐maturity investments are non‐derivative financial assets
that have fixed maturities and fixed or determinable payments, and
it is the Group’s intention to hold these investments to maturity.
They are subsequently measured at amortised cost. Gains or losses
are recognised in profit or loss through the amortisation process
and when the financial asset is de‐ recognised.
Financial liabilities
(iii)
Non‐derivative financial liabilities other than financial guarantees
are subsequently measured at amortised cost. Gains or
losses are recognised in profit or loss through the amortisation
process and when the financial asset is de‐recognised.
24
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Impairment
At the end of each reporting period the Group assesses whether there is
objective evidence that a financial asset has been impaired. A financial asset
(or a group of financial assets) is deemed to be impaired if, and only if, there
is objective evidence of impairment as a result of one or more events (a “loss
event”) having occurred, which has an impact on the estimated future cash
flows of the financial asset(s).
In the case of available-for-sale financial assets, a significant or prolonged
decline in the market value of the instrument is considered to constitute a
loss event. Impairment losses are recognised in profit or loss immediately.
Also, any cumulative decline in fair value previously recognised in other
comprehensive income is reclassified to profit or loss at this point.
In the case of financial assets carried at amortised cost, loss events may
include: indications that the debtors or a group of debtors are experiencing
significant financial difficulty, default or delinquency in interest or principal
payments; indications that they will enter bankruptcy or other financial
reorganisation; and changes in arrears or economic conditions that correlate
with defaults.
For financial assets carried at amortised cost (including loans and
receivables), a separate allowance account is used to reduce the carrying
amount of financial assets impaired by credit losses. After having taken all
possible measures of recovery, if management establishes that the carrying
amount cannot be recovered by any means, at that point the written-off
amounts are charged to the allowance account or the carrying amount of
impaired financial assets is reduced directly if no impairment amount was
previously recognised in the allowance account.
When the terms of financial assets that would otherwise have been past due
or impaired have been renegotiated, the Group recognises the impairment
for such financial assets by taking into account the original terms as if the
terms have not been renegotiated so that the loss events that have occurred
are duly considered.
De-recognition
Financial assets are de-recognised when the contractual rights to receipt of
cash flows expire or the asset is transferred to another party whereby the
entity no longer has any significant continuing involvement in the risks and
benefits associated with the asset. Financial liabilities are de-recognised
when the related obligations are discharged, cancelled or have expired. The
difference between the carrying amount of the financial liability
extinguished or transferred to another party and the fair value of
consideration paid, including the transfer of non-cash assets or liabilities
assumed, is recognised in the statement of comprehensive income or profit
or loss.
(g) Impairment of assets
At the end of each reporting period, the Group assesses whether there is any
indication that an asset may be impaired. The assessment will include the
consideration of external and internal sources of information including dividends
received from subsidiaries, associates or jointly controlled entities deemed to be
out of pre-acquisition profits. If such an indication exists, an impairment test is
carried out on the asset by comparing the recoverable amount of the asset, being
the higher of the asset’s fair value less costs to sell and value in use, to the
asset’s carrying amount. Any excess of the asset’s carrying amount over its
recoverable amount is recognised immediately in profit or loss, unless the asset
is carried at a revalued amount in accordance with another Standard (e.g. in
accordance with the revaluation model in AASB 116: Property, Plant and
Equipment). Any impairment loss of a revalued asset is treated as a revaluation
decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with
indefinite lives and intangible assets not yet available for use.
(h) Leases
Leases are classified at their inception as either operating or finance leases based
on the economic substance of the agreement so as to reflect the risks and benefits
incidental to ownership.
Operating Leases
The minimum lease payments of operating leases, where the lesser effectively
retains substantially all of the risks and benefits of ownership of the leased item,
are recognised as an expense on a straight line basis. Contingent rentals are
recognised as an expense in the financial year in which they are incurred.
Finance Leases
Leases which effectively transfer substantially the entire risks and benefits
incidental to ownership of the leased item to the Group are capitalised at the
present value of the minimum lease payments and disclosed as property, plant and
equipment under lease. A lease liability of equal value is also recognised. The
consolidated entity has no finance leases as at 30 June 2015.
(i) Employee benefits
Provision is made for the Group’s liability for employee benefits arising from
services rendered by employees to the end of the reporting period. Employee
benefits that are expected to be settled within one year have been measured at
the amounts expected to be paid when the liability is settled.
Employee benefits payable later than one year have been measured at the present
value of the estimated future cash outflows to be made for those benefits. In
determining the liability, consideration is given to employee wage increases and
the probability that the employee may satisfy any vesting requirements. These
cash flows are discounted using market yields on national government bonds
with terms to maturity that match the expected timing of cash flows attributable
to employee benefits.
25
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
(j) Provisions
Provisions are recognised when the group has a legal or constructive
obligation, as a result of past events, for which it is probable that an outflow
of economic benefits will result and that outflow can be reliably measured.
(k) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits available on
demand with banks, other short-term highly liquid investments with original
maturities of 3 months or less and bank overdrafts.
Bank overdrafts are reported within short-term borrowings in current
liabilities in the statement of financial position.
(l) Issued capital
Issued and paid up capital is recognised at the fair value of the consideration
received by the Company.
Transaction costs on the issue of equity instruments Transaction costs
arising on the issue of equity instruments are recognised directly in equity as
a reduction of the proceeds of the equity instrument to which the costs relate.
Transaction costs are costs that are incurred directly in connection with the
issue of those equity instruments and which would not have been incurred
had those instruments not been issued.
(m) Share-based payments
The Group measures the cost of equity-settled transactions with employees
and consultants by reference to the fair value of the equity instruments at the
date at which they are granted. The fair value is determined by using the
Black-Scholes model, using the assumptions detailed in Note 23.
(i)
The fair value determined at the grant date of the equity settled share
based payment is expensed on a straight-line basis over the vesting period,
based on the directors’ estimate of shares that will eventually vest.
(ii) Equity-settled share based payment transactions with other parties are
measured at the fair value of the goods and services received, except where
the fair value cannot be estimated reliably, in which these are measured at the
fair value of the equity instruments granted at the date the entity obtains the
goods or the counterparty renders the service.
(n) Going concern basis
The Group is involved in the exploration and evaluation of mineral
tenements and as such expects to be cash absorbing until these tenements
demonstrate that they contain economically recoverable reserves.
As at 30 June 2015, the Group had a surplus of current assets over current
liabilities of $941,691 (2014: $3,423,894) including cash reserves of
$1,167,087 (2014: $3,583,741).
For the year ended 30 June 2015, the Group reported net cash inflows/
(outflows) from operations and investing activities of $1,647,784 (2014:$
$165,053) and ($1,837,621) (2014: ($2,329,143)) respectively. These cash
outflows were offset by net cash inflows from financing activities of
$1,068,750 (2014: Nil) resulting in total cash inflows/ (outflows) for the year
of ($2,416,655) (2014: $2,164,090).
On the 3rd August 2015 Dart Mining NL received notification from
Innovation Australia (formerly AusIndustry) stating that the previous R&D
Claims were not core R&D activities in accordance with the Industry
Research and Development Act 1986.
Dart has engaged an independent R&D expert to compile additional
information to better clarify the claims made to Innovation Australia who have
also appointed a new reviewer to oversee the claims. At this stage the outcome
is uncertain and may take six months to be resolved. Preliminary advice from
the independent expert is that there is a reasonable degree of confidence that
the claim will be allowed, however, if this is not the case the total amount
which is potentially refundable to Innovation Australia is $2,033,733.
Notwithstanding the above, the financial statements have been prepared on a
going concern basis which contemplates the continuity of normal business
activities and the realisation of assets and settlement of liabilities in the
ordinary course of business.
The ability of the Group to continue as a going concern for the twelve months
from the date of this report is dependent on its ability to control its overhead
costs and exploration expenditures and to generate additional funds from
activities including:
other future equity or debt fund raisings;
the potential farm-out of participating interests in the Group’s tenements;
and
successful development of existing tenements.
Having carefully assessed the likelihood of securing additional funding or
entering into farm-out arrangements including the funds raised subsequent to
the balance date and the Group’s ability to effectively manage their
expenditures and cash flows from operations, the directors believe that the
Group will continue to operate as a going concern for the foreseeable future
and therefore it is appropriate to prepare the financial statements on a going
concern basis.
(o) Revenue and other income
Revenue is measured at the fair value of the consideration received or
receivable after taking into account any trade discounts and volume rebates
allowed. When the inflow of consideration is deferred it is treated as the
provision of financing and is discounted at a rate of interest that is generally
accepted in the market for similar arrangements. The difference between the
amount initially recognised and the amount ultimately received is interest
revenue.
Interest revenue is recognised using the effective interest method.
All revenue is stated net of the amount of goods and services tax.
(p) Trade and other receivables
Trade and other receivables include amounts due from customers for goods
sold and services performed in the ordinary course of business. Receivables
expected to be collected within 12 months of the end of the reporting period
are classified as current assets. All other receivables are classified as non-
current assets.
Trade and other receivables are initially recognised at fair value and
subsequently measured at amortised cost using the effective interest method,
less any provision for impairment. Refer to Note 2(f) for further discussion on
the determination of impairment losses.
(q) Trade and other payables
Trade and other payables represent the liabilities for goods and services
received by the entity that remain unpaid at the end of the reporting period. The
balance is recognised as a current liability with the amounts normally paid
within 30 days of recognition of the liability.
26
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
(r) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST,
except where the amount of GST incurred is not recoverable from the
Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of the amount of GST
receivable or payable. The net amount of GST recoverable from, or payable
to, the ATO is included with other receivables or payables in the statement
of financial position.
Cash flows are presented on a gross basis. The GST components of cash
flows arising from investing or financing activities which are recoverable
from, or payable to, the ATO are presented as operating cash flows included
in receipts from customers or payments to suppliers.
(s) Government grants
Government grants are recognised at fair value where there is reasonable
assurance that the grant will be received and all grant conditions will be met.
Grants relating to expense items are recognised as income on the date of
receipt of the grant. Grants relating to assets are credited to deferred income
at fair value and are credited to income over the expected useful life of the
asset on a straight-line basis.
Repayment of Government grants are recognised at fair value where there is
a reasonable likelihood that a repayment will be required.
(t) Comparative figures
When required by Accounting Standards, comparative figures have been
adjusted to conform to changes in presentation for the current financial year.
Where the Group retrospectively applies an accounting policy, makes a
retrospective restatement or reclassifies items in its financial statements, an
additional (third) statement of financial position as at the beginning of the
preceding period in addition to the minimum comparative financial
statement is presented.
(u) Critical accounting judgements and sources of
estimations
In applying the Group’s accounting policies, management is required to
make judgements, estimates and assumptions about the carrying values of
assets and liabilities. These estimates and assumptions are made based on
past experience and other factors that are considered relevant. Actual results
may differ from these estimates. All estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision
affects both current and future periods.
The following describes critical judgements that management has made in
the process of applying the Group’s accounting policies and that have the
most significant effect on the amounts recognised in the financial statements:
Impairment of deferred exploration costs
The Group’s accounting policy for exploration expenditure results in some
items being capitalised for an area of interest where it is considered likely to
be recoverable in the future or where the activities have not reached a stage
which permits a reasonable assessment of the existence of reserves.
Management is required to make certain estimates and assumptions as to
future events and circumstances which may change as new information
becomes available. If a judgement is made that recovery of a capitalised
expenditure is unlikely, the relevant amount will be written off to the income
statement.
27
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
(v) Changes in accounting policy, disclosures, standards and interpretations
(i) Changes in accounting policies, new and amended standards and interpretations
The accounting policies adopted are consistent with those of the previous financial year except as follows:
New and amended standards and interpretations
The Group has adopted the following new and amended Australian Accounting Standards and AASB Interpretations as of 1 July 2014:
Reference
Title
AASB
2014‐1
Amendments to Australian Accounting Standards
(Part A: Annual Improvements 2010–2012 and 2011–2013 Cycles)
The Annual Improvements 2010‐2012 has made number of amendments to various AASBs, which are summarised below.
The amendments to AASB 2 (i) change the definitions of ‘vesting condition’ and ‘market condition’; and (ii) add
definitions for ‘performance condition’ and ‘service condition’ which were previously included within the definition of
‘vesting condition’
The amendments to AASB 3 clarify that contingent consideration that is classified as an asset or a liability should be
measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial
instrument within the scope of AASB 9 or AASB 139 or a non‐financial asset or liability. Changes in fair value (other than
measurement period adjustments) should be recognised in profit and loss.
The amendments to the basis for conclusions of AASB 13 clarify that the issue of AASB 13 and consequential
amendments to AASB 139 and AASB 9 did not remove the ability to measure short‐term receivables and payables with
no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial.
The amendments to AASB 116 and AASB 138 remove perceived inconsistencies in the accounting for accumulated
depreciation/amortisation when an item of property, plant and equipment or an intangible asset is revalued. The
amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the
carrying amount of the asset and that accumulated depreciation/amortisation is the difference between the gross
carrying amount and the carrying amount after taking into account accumulated impairment losses.
The Annual Improvements 2011‐2013 has made number of amendments to various AASBs, which are summarised
below.
The amendments to AASB 3 clarify that the standard does not apply to the accounting for the formation of all types of
joint arrangements in the financial statements of the joint arrangement itself.
The amendments to AASB 13 clarify that the scope of the portfolio exception for measuring the fair value of a group of
financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted
for in accordance with, AASB 139 or AASB 9, even if those contracts do not meet the definitions of financial assets or
financial liabilities within AASB 132.
The amendments to AASB 140 clarify that AASB 140 and AASB 3 are not mutually exclusive and application of both
standards may be required. Consequently, an entity acquiring investment property must determine whether:
(i)
the property meets the definition of investment property in terms of AASB 140; and
(ii)
the transaction meets the definition of a business combination under AASB 3.
AASB 1031 AASB 2013‐9 Amendments to Australian Accounting Standards ‐ Conceptual Framework, Materiality and Financial
Instruments’
The revised AASB 1031 is an interim standard that cross‐references to other Standards and the ‘Framework for the
Preparation and Presentation of Financial Statements’ (issued Standards’ – December 2013) that contain guidance on
materiality. The AASB is Framework is progressively removing references to AASB 1031 in all Standards and
Interpretations. Once all of these references have been removed, AASB 1031 will be withdrawn.
28
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
The adoption of the standards or interpretations do not impact the annual consolidated financial statements of the Group or the interim condensed
consolidated financial statements of the Group.
The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future
reporting periods, some of which are relevant to the Group. The Group has decided not to early adopt any of the new and amended
pronouncements. The Group’s assessment of the new and amended pronouncements that are relevant to the Group but applicable in future
reporting periods is set out below:
Application
date of
standard
Application date
for group
1 January 2018
1 July 2018
Reference
Title
Summary
AASB 9
Financial
Instruments
AASB 9 – This revised standard provides guidance on the
classification and measurement of financial assets, which is the
first phase of a multi-phase project to replace AASB 139 Financial
Instruments: Recognition and Measurement. Under the new
guidance, a financial asset is to be measured at amortised cost only
if it is held within a business model whose objective is to collect
contractual cash flows and the contractual terms of the asset give
rise on specified dates to cash flows that are payments solely of
principal and interest (on the principal amount outstanding). All
other financial assets are to be measured at fair value. Changes in
the fair value of investments in equity securities that are not part of
a trading activity may be reported directly in equity, but upon
realisation those accumulated changes in value are not recycled to
the profit or loss. Changes in the fair value of all other financial
assets carried at fair value are reported in the profit or loss. The
Group is yet to assess the impact of the new standard. In the
second phase of the replacement project, the revised standard
incorporates amended requirements for the classification and
measurement of financial liabilities. The new requirements pertain
to liabilities at fair value through profit or loss, whereby the
portion of the change in fair value related to changes in the entity’s
own credit risk is presented in other comprehensive income rather
than profit or loss. There will be no impact on the Group’s
accounting for financial liabilities, as the Group does not have any
liabilities at fair value through profit or loss. Recent amendments
as part of the project introduced a new hedge accounting model to
simplify hedge accounting requirements and more closely align
hedge accounting with risk management activities. There will be
no impact on the Group’s accounting, as the Group does not utilise
hedge accounting.
AASB
2014 – 10
Sale or
contribution of
Assets between an
Investor and its
Associate or Joint
Venture
AASB
2014 – 10
Sale or
contribution of
Assets between an
Investor and its
Associate or Joint
Venture
AASB 2014-10- The amendments address an acknowledged inconsistency
between the requirements in AASB 10 and those in AASB 128 (2011), in
dealing with the sale or contribution of assets between an investor and its
associate or joint venture.
The main consequence of the amendments is that a full gain or loss is
recognised when a transaction involves a business (whether it is housed in
a subsidiary or not). A partial gain or loss is recognised when a transaction
involves assets that do not constitute a business, even if these assets are
housed in a subsidiary. The Group is yet to assess the impact of the new
standard, if any.
AASB 2014-10- The amendments address an acknowledged inconsistency
between the requirements in AASB 10 and those in AASB 128 (2011), in
dealing with the sale or contribution of assets between an investor and its
associate or joint venture.
The main consequence of the amendments is that a full gain or loss is
recognised when a transaction involves a business (whether it is housed in
a subsidiary or not). A partial gain or loss is recognised when a transaction
involves assets that do not constitute a business, even if these assets are
housed in a subsidiary. The Group is yet to assess the impact of the new
standard, if any.
1 Jan 2016
1 Jul 2016
1 Jan 2016
1 Jul 2016
29
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Reference Title
Summary
AASB
2014 – 10
Sale or contribution
of Assets between an
Investor and its
Associate or Joint
Venture
AASB 2014-10- The amendments address an acknowledged inconsistency
between the requirements in AASB 10 and those in AASB 128 (2011), in
dealing with the sale or contribution of assets between an investor and its
associate or joint venture.
The main consequence of the amendments is that a full gain or loss is
recognised when a transaction involves a business (whether it is housed in a
subsidiary or not). A partial gain or loss is recognised when a transaction
involves assets that do not constitute a business, even if these assets are
housed in a subsidiary. The Group is yet to assess the impact of the new
standard, if any.
Application
date of
standard
Application
date for group
1 Jan 2016
1 Jul 2016
AASB
2014 – 3
AASB
2014-4
AASB
2015 – 1
Accounting for
Acquisitions of
Interests in Joint
Operations
AASB 2014-3 – This amendment sets out the business combination
accounting required to be applied to acquisitions of interests in a joint
operation that meets the definition of a business. The Group is yet to assess
the impact of the new standard, if any.
Clarification of
Acceptable Methods of
Depreciation and
Amortisation
AASB 2014-4 – These amendments introduce a rebuttable presumption
that the use of revenue-based depreciation/amortisation methods for
intangible assets is inappropriate and for property, plant and equipment it
cannot be used. There will be no impact on the Group’s accounting as it
does not use revenue-based depreciation/amortisation methods.
1 Jan 2016
1 Jul 2016
1 Jan 2016
1 Jul 2016
Annual improvements
AASB 2015-1- The following amendments / clarifications are made:
AASB 5 – reclassification from held for sale to held for
1 Jan 2016
1 Jul 2016
distribution to owners or from held for distribution to owners to
held for sale is considered to the continuation of the original plan
of disposal;
AASB 7 – adds basis of conclusion to clarify disclosure
requirements for transferred financial assets and offsetting
arrangements;
AASB 119 – confirms that high quality corporate bonds or
national government bonds used to determine discount rates must
be in the same currency as the benefits paid to the employee;
AASB 134 – clarifies information about cross references in the
interim financial report.
The Group is yet to assess the impact of the amendments, if any.
30
Application date
of standard
Application
date for
group
1 Jan 2018
1 Jul 2018
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Reference
Title
Summary
AASB 15
Revenue from contracts
with customers
AASB 15: Revenue from Contracts with Customers (applicable to
annual reporting periods commencing on or after 1 January 2018).
When effective, this Standard will replace the current accounting
requirements applicable to revenue with a single, principles-based
model. Except for a limited number of exceptions, including leases,
the new revenue model in AASB 15 will apply to all contracts with
customers as well as non-monetary exchanges between entities in
the same line of business to facilitate sales to customers and
potential customers. The core principle of the Standard is that an
entity will recognise revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange
for the goods or services. To achieve this objective, AASB 15
provides the following five-step process:
1.
2.
3.
4.
5.
identify the contract(s) with a customer;
identify the performance obligations in the contract(s);
determine the transaction price;
allocate the transaction price to the performance
obligations in the contract(s); and
recognise revenue when (or as) the performance
obligations are satisfied.
This Standard will require retrospective restatement, as well as
enhanced disclosures regarding revenue. Although the directors
anticipate that the adoption of AASB 15 may have an impact on the
Group’s financial statements, it is impracticable at this stage to
provide a reasonable estimate of such impact.
The amendments issued but not yet effective from the Annual Improvements Projects to the above mentioned standards will have no impact on the
accounting policies, financial position or performance of the Group.
31
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 3 Parent information
Statement of Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Consolidated
2015
$
2014
$
1,289,803
7,577,037
8,866,840
348,312
458
348,770
8,518,070
18,379,349
386,158
(10,247,437)
8,518,070
3,704,321
7,138,696
10,843,017
280,654
-
280,654
10,562,363
17,310,599
371,698
(7,119,934)
10,562,363
Statement of Profit or Loss and Other Comprehensive Income
Total profit/(loss)
Total comprehensive income (loss)
(3,146,130)
(3,146,130)
(1,082,743)
(1,082,743)
Note 4 Revenue and other income
Revenue from continuing operations
Sales revenue
– Research and development grant
Other revenue
– Interest received
– Other revenue
-
-
92,492
2,916
95,408
95,408
2,033,958
2,033,958
133,321
250
133,571
2,167,529
32
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 5 Profit/(loss) for the year
Profit/(loss) before income tax from operations include the following expenses
Exploration expenses written off
Research and development costs
Share- based payments
Depreciation
Note 6 Tax expense
(a) The prima facie tax on profit from ordinary activities before income tax is reconciled to the
income tax expense
Profit/(loss) from continuing operations
Income tax expense (benefit) calculated at 30%
Effect of non-deductible expenses
Effect of deductible temporary differences
Effect of unused tax losses and tax offsets not recognised as deferred tax assets
Utilisation of tax losses brought forward
Income tax expense
(b) Tax losses not brought to account
Tax losses brought forward
Current year tax losses
Utilisation of tax losses brought forward
(De-recognition)/recognition of tax losses – prior years
Tax losses carried forward
Consolidated
2015
$
2014
$
1,389,454
464,108
22,060
1,296
1,022,549
798,585
43,600
173
(3,146,130)
(1,060,846)
(943,839)
390,151
(571,545)
1,125,233
-
-
1,739,145
1,125,233
-
-
(318,254)
571,561
(366,678)
113,371
-
-
1,625,774
113,371
-
-
2,918,378
1,739,145
33
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 7 Key management personnel compensation
Total remunerations paid to KMP of the Company and the Group during the year are as follows :
Short-term employee benefits
Post-employment benefits
Share-based payments
Long-term employee benefits
Termination payments
Total KMP compensation
Consolidated
2015
$
2014
$
775,817
99,903
14,760
-
-
890,480
1,087,854
55,260
7,600
8,463
112,240
1,271,417
KMP options and rights holdings
There were no listed options over ordinary shares held during the financial year by KMP of the Group (2014: Nil)
The number of unlisted options and incentive rights over ordinary shares held during the financial year by each KMP of the Group is as follows:
Balance at
beginning of year
Incentive rights
granted as
remuneration
during the year
Incentive rights
exercised, lapsed or
excluded during
the year
Net other
changes1
Balance at
end of year
2015
D G Turnbull
J Nethersole
J Cornelius
2014
D G Turnbull
C J Bain
S G Poke
R G Udovenya
2,000,000
-
-
2,250,000
250,000
750,000
(2,000,000)
-
-
2,000,000
3,250,000
(2,000,000)
-
-
2,250,000
250,000
750,000
3,250,000
1,000,000
3,000,000
3,000,000
3,000,000
2,000,000
-
-
-
(1,000,000)
(1,000,000)
(1,000,000)
(1,000,000)
10,000,000
2,000,000
(4,000,000)
-
2,000,000
(2,000,000)
(2,000,000)
(2,000,000)
(6,000,000)
-
-
-
2,000,000
1 Net other changes represents reductions to Directors’ options or shareholdings on their resignations.
34
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 7 Key management personnel compensation (continued)
KMP shareholdings
The number of ordinary shares held by each KMP of the Group or their nominees during the financial year is as follows:
Balance at
beginning of year
Shares acquired
through exercise
of options and
incentive rights
Shares disposed
Net other change1
Balance at
end of year
2015
D G Turnbull
2014
L J Ward
D G Turnbull
C J Bain
S G Poke
R G Udovenya
4,459,179
4,459,179
2,000,000
4,459,179
1,853,332
2,903,749
423,955
11,640,215
Note 8 Auditor’s remuneration
Amounts received or due and receivable by MSI Ragg Weir for:
Audit or review of the financial statements of the Group
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,000,000)
-
(1,853,332)
(2,903,749)
(423,955)
(7,181,036)
4,459,179
4,459,179
-
4,459,179
-
-
-
4,459,179
1 Net other changes represents reductions to Directors’ options or shareholdings on their resignations.
Consolidated
2015
$
2014
$
28,750
27,500
35
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 9 Earnings per share
(a) Reconciliation of earnings to profit and loss
Net profit/(loss) for the year
Earnings/(loss) used to calculate basic EPS
(b) Weighted average number of ordinary shares outstanding during the year used in the calculation of
basic EPS
Basic earnings per share
Diluted earnings per share
Consolidated
2015
$
2014
$
(3,146,130)
(3,146,130)
(1,060,846)
(1,060,846)
236,817,343
207,091,315
(1.33)
(1.33)
(0.51)
(0.51)
Diluted earnings per share is calculated after classifying all options on issue remaining unconverted at 30 June 2015 as potential ordinary shares. At 30
June 2015, the Company had on issue 15,473,048 options and incentive rights over unissued capital and had incurred a net loss. Unlisted options are not
considered dilutive and have not been included in the calculations of diluted earnings per share.
Note 10 Cash and cash equivalent
Cash at bank and on hand
Short-term deposits
Note 11 Trade and other receivables
Accrued interest – other persons/corporations
GST receivable
Others
161,581
1,005,506
1,167,087
38,717
3,545,024
3,583,741
5,045
44,516
866
50,427
11,620
47,388
36,256
95,264
No receivable amounts were past due or impaired at 30 June 2015 (2014: Nil)
Credit risk
The Group has no significant concentration of credit risk with respect to any single counter party or group of counter parties other than those receivables
specifically provided for and mentioned within Note 11. The class of assets described as Trade and Other Receivables is considered to be the main source of
credit risk related to the Group.
36
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 12 Controlled entities
Dart Resources Pty Ltd
Mt Unicorn Holdings Pty Ltd
Mt View Holdings Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Percentage owned (%)
2015
100%
100%
100%
2014
100%
100%
100%
For each of the controlled entities that the place of business is the same as the place of incorporation. The activities of these entities are not material
Group.
to the
There are no significant restrictions on the Group’s or its controlled entities ability to access or use the assets and settle the liabilities of the Group nor are
there restrictions on ownership changes to these entities.
Note 13 Property, plant and equipment
Plant and equipment
At cost
Accumulated depreciation
Computer equipment & software
At cost
Accumulated depreciation
Motor vehicles
At cost
Accumulated depreciation
Total property, plant and equipment
Consolidated
2015
$
2014
$
156,073
(150,065)
6,008
137,526
(120,155)
17,371
196,074
(112,593)
83,481
106,860
152,129
(136,410)
15,719
121,610
(117,803)
3,807
100,811
(100,811)
-
19,526
37
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 13 Property, plant and equipment (continued)
Plant & equipment
Computer
equipment &
software
Motor vehicles
Total
$
34,586
1,846
-
(20,713)
15,719
15,719
3,943
(451)
(13,203)
6,008
3 – 6 years
3 – 4 years
4 – 5 years
Consolidated
Balance at 1 July 2013
Additions
Depreciation expense
Depreciation expense capitalised
Balance at 30 June 2014
Balance at 1 July 2014
Additions
Depreciation expense
Depreciation expense capitalised
Balance at 30 June 2015
The following useful lives are used in the calculation of depreciation:
Plant and equipment
Computer equipment & software
Motor vehicles
Note 14 Deferred exploration and evaluation
Balance at beginning of financial year
Current year expenditure capitalised
Exploration costs written-off
Balance at end of financial year
$
14,708
2,895
(173)
(13,623)
3,807
3,807
15,916
(845)
(1,507)
17,371
$
1,316
-
-
(1,316)
-
-
95,263
-
(11,782)
83,481
$
50,610
4,741
(173)
(35,652)
19,526
19,526
115,122
(1,296)
(26,492)
106,860
Consolidated
2015
$
7,030,130
1,752,769
(1,389,454)
7,393,445
2014
$
6,143,028
1,909,651
(1,022,549)
7,030,130
38
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 14 Deferred exploration and evaluation (continued)
Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of Pre‐feasibility Studies, exploration and evaluation
or sale or farm‐out of the exploration interests. A percentage of the CEO’s salary and associated costs are capitalised in line with the Company’s
policy for capitalising costs directly relating to pre‐feasibility and exploration. Namely, the Company has four cost centres, Corporate, Pre‐feasibility,
Research and Development and Exploration. Where identifiable, costs associated with the Pre‐feasibility and Exploration cost centres are
capitalised. These costs are annually reviewed for impairment and a charge is made direct to the Income Statement of the Company when an
impairment is identified. An impairment of $1,389,454 (2014: $1,022,549) was brought to account for the financial year for costs associated with the
Slaty Creek Project and areas within the Dart Tenement. The Company still intends to continue activity on the remaining tenements under its
control.
Note 15 Other assets
CURRENT
Prepayments
NON-CURRENT
Bond security for exploration tenement licences
Bond security for company credit cards
Note 16 Trade and other payables
CURRENT
Trade payables
Sundry payables
Terms and conditions relating to the above financial instruments:
(i) Trade creditors are non-interest bearing and are usually settled on 30 day terms.
(ii)
Other creditors are non-interest bearing and have an average term of 30 days.
Note 17 Provisions
CURRENT
Short term employee benefits
NON-CURRENT
Employee benefits
Consolidated
2015
$
2014
$
72,289
72,289
51,032
25,500
76,532
25,343
25,343
74,340
25,500
99,840
93,032
208,768
301,800
134,238
107,423
241,661
46,312
38,793
458
-
39
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 18 Issued capital
243,257,982 fully paid ordinary shares (2014 : 207,091,315)
Ordinary shares
Consolidated
Balance at the beginning of the financial year
Shares issued during the year
Less transaction costs arising from issue of shares
Balance at end of financial year
Terms and conditions of contributed equity
Consolidated
2015
$
2014
$
18,379,349
17,310,599
2015
No
207,091,315
36,166,667
-
243,257,982
$
17,310,599
1,085,000
(16,250)
18,379,349
2014
No
$
207,091,315
17,310,599
-
-
-
-
207,091,315
17,310,599
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale of
all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by
proxy, at a meeting of the Company.
The issued capital of the Company quoted on the ASX comprises 243,257,982 ordinary shares (2014: 207,091,315).
Share options
During the financial year, the Company issued the following share options :
Securities
Unlisted
Unlisted
Unlisted
Expiry date
Number
Exercise price
(cents)
Escrow period
31 December 2017
31 December 2017
31 December 2016
400,000
1,600,000
2,000,000
3
6
11
At the end of the financial year, there were 15,473,048 (2014: 13,473,048) unlisted options on issue
Securities
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Expiry date
Number
Exercise price
(cents)
Escrow period
20 March 2017
20 March 2017
31 December 2015
31 December 2016
7 May 2016
30 August 2016
31 December 2016
31 December 2017
31 December 2017
100,000
100,000
3,000,000
3,000,000
4,273,048
1,000,000
2,000,000
1,600,000
400,000
18
22
15
15
11.1
11.1
11
6
3
-
-
-
-
-
-
-
-
-
-
-
-
40
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 19 Expenditure commitments
Exploration expenditure
rights
Under the terms of the exploration tenement licences, the Group has a commitment to meet a minimum expenditure requirement in order to keep its
current. The minimum expenditure requirement is not recognised as a liability in the Statement of Financial Position of the Group as the Group may relinquish
its rights to a particular tenement thereby removing the requirement to meet the minimum expenditure requirement.
Not longer than 1 year
Between 1 and 5 years
Longer than 5 years
Operating leases
Consolidated
2015
$
533,393
865,287
-
2014
$
1,118,400
1,212,990
-
1,398,680
2,331,390
The Group has commercial leases on property. These leases have an average life of between zero and one year with renewal options on the property
leases. There are no restrictions upon the lessee by entering into these leases.
Future minimum lease payments payable under non-cancellable operating leases as at the balance date are as follows:
Not longer than 1 year
Between 1 and 5 years
Licence agreement
7,669
-
7,669
The Group has a licence agreement for exclusive use of an office area. These licence is for 3 years and is not expected to be renewed. There are no
restrictions upon the lessee by entering into this agreement.
Future minimum payments payable under a non-cancellable agreement as at the balance date are as follows:
Not longer than 1 year
Between 1 and 5 years
30,219
57,954
88,173
15,687
2,902
18,589
15,687
2,902
18,589
Note 20 Contingent liabilities and contingent assets
The company establishes an accrued liability for claims when it determines that a loss is probable and the amount of the loss can be reasonably
estimated. Accruals will be adjusted from time to time, as appropriate, in light of additional information.
On the 3rd August 2015 Dart Mining NL received notification from Innovation Australia (formerly AusIndustry) stating that the previous R&D Claims
were not core R&D activities in accordance with the Industry Research and Development Act 1986. Dart has engaged an independent R&D expert to
compile additional information to better clarify the claims made to Innovation Australia who have also appointed a new reviewer to oversee the claims.
At this stage the outcome is uncertain and may take six months to be resolved. Preliminary advice from the independent expert is that there is a
reasonable degree of confidence that the claim will be allowed, however, if this is not the case the total amount which is potentially refundable to
Innovation Australia is $2,033,733.
Under tenement licence conditions in Victoria the Group is required to rehabilitate each licence area to its original state subsequent to any
exploration work. Rehabilitation costs are estimated not to exceed $60,000.
No contingent assets existed at the reporting date
Note 21 Operating segments
The Group’s activities consist of base metal and gold exploration currently in one geographic region of north-east Victoria. There are no other significant
classes of business, either singularly or in aggregate. Internal monthly management reports are provided to the Group’s Directors that consolidate
operations in one segment. Therefore the Group’s activities are classed as one business segment and as a result operating and financial information are not
separately disclosed in this note.
41
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 22 Cash-flow information
a) Reconciliation of cash flow from operations with profit after income tax
Profit/(loss) after income tax
Non cash flows in profit/(loss)
Depreciation
Share-based payments
Exploration cost written off
Loss on disposal of investment
Changes in assets and liabilities
(Increase)/Decrease in receivables
(Increase)/Decrease in other assets
Increase/(Decrease) in trade payables and accruals
Increase/(Decrease) in provisions
Cash flow from operations
b) Reconciliation of cash
Cash balance comprises:
Cash on hand and at call
Term deposits
c)
Financing facility
The Group has no available finance facilities at balance date.
d) Non-cash financing and investing activities
There were no non-cash financing or investing activities during the financial year.
Consolidated
2015
$
2014
$
(3,146,130)
(1,060,846)
1,296
8,300
1,389,454
-
43,401
(46,947)
102,842
-
(1,647,784)
161,581
1,005,506
1,167,087
173
43,600
1,022,549
37,500
50,600
2,978
72,618
(4,119)
165,053
38,717
3,545,024
3,583,741
42
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 23 Share-based payments
The aggregate share-based payments for the financial year are set out below:
Details of share-based payments
Fair value of incentive rights granted to Executive Director
Fair value of incentive rights granted to Managing Director
Fair value of incentive rights granted to employees
Fair value of incentive rights or options granted to Non-executive Directors
Fair value of granted options capitalised and classified as exploration cost
Fair value of options granted as share based payments
Fair value adjustment to options issued in prior years
Expense arising from share-based payments
Executive options
Share-based payment options held at the end of the reporting year were as follows:
Grant date
Grantee
Number
Vesting date
Expiry date
C J Bain
S G Poke
R G Udovenya
C J Bain
S G Poke
R G Udovenya
D G Turnbull
D G Turnbull
J Cornelius
J Nethersole
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
250,000
750,000
250,000
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
31 Dec 2014
12 Dec 2014
01 Jan 2015
18 Dec 2014
31 Dec 2015
31 Dec 2015
31 Dec 2015
31 Dec 2016
31 Dec 2016
31 Dec 2016
31 Dec 2016
31 Dec 2017
31 Dec 2017
31 Dec 2017
Consolidated
2015
$
-
-
22,060
-
-
-
-
22,060
2014
$
7,600
-
-
-
-
36,000
-
43,600
Exercise price
(cents)
Fair value at
grant date
(cents)
15
15
15
15
15
15
11
6
6
6
4.60
4.60
4.60
5.39
5.39
5.39
0.23
0.74
0.86
0.74
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
5 Nov 2012
12 Dec 2014
12 Dec 2014
01 Jan 2015
18 Dec 2014
Other options
Grant date
20 Mar 2012
20 Mar 2012
7 May 2013
30 August 2013
18 Dec 2014
18 Dec 2014
Number
Vesting date
Expiry date
Exercise price
(cents)
Fair value at
grant date
(cents)
100,000
100,000
4,273,048
1,000,000
400,000
350,000
20 Mar 2012
20 Mar 2012
7 May 2013
30 Aug 2013
18 Dec 2014
18 Dec 2014
20 Mar 2017
20 Mar 2017
7 May 2016
30 Aug 2016
31 Dec 2017
31 Dec 2017
18
22
11.1
11.1
3
6
4.50
3.63
4.49
3.60
1.18
0.74
43
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2015
Note 23 Share-based payments (continued)
The total fair value of the unexercised share options and incentive rights granted during the financial year was $22,060. Options were priced using a Black-
Scholes model. Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for the effects of non-
transferability, exercise restrictions. Expected volatility is based on the historical share price volatility of the Company over the reporting period.
Share price at grant date
Exercise price
Expected volatility
Option life
Dividend yield
Risk-free interest rate
Consolidated
2015
$
2014
$
3 – 3.1 cents
3 – 11 cents
69.53%
3 years
Nil
2.52%
3.9 – 8 cents
11 – 11.1 cents
53.19 – 79.15%
3 years
Nil
2.52 – 2.75%
Weighted average remaining contractual life
Share options outstanding at 30 June 2015 had a weighted average contractual life of 335 days (2014: 750 days)
Movements in share-based payments options
2015
2014
Number Weighted average
exercise price
(cents)
Number Weighted average
exercise price
Balance at beginning of year
Granted with an exercise price of 11.1 cents
Incentive rights granted with an exercise price of 11 cents
Granted with an exercise price of 3 cents
Granted with an exercise price of 6 cents
Granted with an exercise price of 11 cents
Cancelled*
Expired
Balance at end of year
Exercisable at end of year
13,473,048
-
-
400,000
1,600,000
(2,000,000)
(2,000,000)
-
15,473,048
15,473,048
3
6
11
18,823,048
1,000,000
2,000,000
-
-
-
-
(8,350,000)
13,473,048
13,473,048
*Upon the grant of 2,000,000 options to D Turnbull 2,000,000 incentive rights with an exercise price of 11 cents were cancelled.
(cents)
11.1
11.1
44
Notes to the consolidated financial statements
For the financial year ended 30 June 2014
Note 24 Events after the reporting period
The Company has received from AusIndustry a Certificate of Finding in relation to the Company’s R & D claims for the years 2011/12, 2012/13. The
Certificate of Finding sets out a preliminary view of AusIndustry that the full amount of the Tax Offset is potentially repayable by the Company.
In response to the Certificate of Finding, the Company has submitted an application for internal review by a new assessor at AusIndustry, and engaged
International Technology Group (ITG), a leading professional advisory firm specialising in R & D matters, to assist it.
No other matters or circumstances have arisen since the end of the financial year that have significantly affected or may have a significant effect on the financial
operations of the Group, the financial performance of those operations or the financial position of the Group in the subsequent financial year.
Note 25 Related party transactions
Key Management Personnel
Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any
Director (executive or otherwise) of the entity are considered Key Management Personnel.
Other related parties
Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.
Transactions with related parties
Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise
stated.
The following transactions occurred with related parties
Director related entities
Professional fees paid to Cotlco Pty Ltd, of which J Cottle is a member
Professional fees paid to TFO Nominees Pty Ltd, of which J Cornelius is a consultant
Professional fees paid to AJE Projects Development Consultancy Pty Ltd, of which J Eltham is a member
Professional fees paid to Pritchard ResourcesLaw International, of which R G Udovenya is a member
Directors fees paid to Pritchard ResourcesLaw International, of which R G Udovenya is a member
Consultancy fees paid to North East Geological Contractors Pty Ltd, a company in which D G Turnbull is a
director and shareholder
Consolidated
2015
$
2014
$
23,100
-
15,391
-
-
12,375
50,374
99,000
189,116
35,625
34,441
27,000
Professional fees paid to Draffin Walker Pty Ltd, a company in which A Draffin is a director and shareholder
-
56,934
Professional fees paid to Retro Group Pty Ltd, a company in which J Chirnside is a director and shareholder
Rent income received from Bruce Paterson
Amount due to related parties at end of year
AJE Project Development Consultancy Pty Ltd
Other transactions and balances with Key Management Personnel
There were no other related party transactions other than those described in this note
30,000
(2,916)
-
-
-
13,411
45
Notes to the consolidated financial statements
For the financial year ended 30 June 2014
Note 26 Financial risk management
The Group’s financial instruments consist mainly of deposits with banks, receivables and trade and other payables.
The totals of each category of financial instruments, measured in accordance with AASB139 as detailed in the accounting policies to these financial
statements are as follows :
Financial assets
Cash and cash equivalents
Other receivables
Other non-current receivables
Total financial assets
Financial liabilities
Financial liabilities at amortised costs - trade and other payables
Total financial liabilities
Consolidated
2015
$
2014
$
1,167,087
50,427
76,533
1,294,047
301,800
301,800
3,583,741
95,264
99,840
3,778,845
241,661
241,661
Specific financial risk exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk and
foreign currency risk. There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives,
policies and processes for managing or measuring the risks from the previous period.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a
policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Group’s exposure to credit risks
are continuously monitored and controlled by counterparty limits that are reviewed and approved by the management on a regular basis. The Group does not
have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid
funds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represent the Group’s maximum exposure to
credit risk.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework
for the management of the Group’s short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching profiles of financial assets and
liabilities.
46
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2014
Note 26 Financial risk management (continued)
The following table details the Group’s remaining contractual maturity for its financial liabilities and financial assets
Within 1 year
1 to 5 years
Over 5 years
Total
2015
2014
2015
2014
2015
2014
2015
2014
Consolidated
Financial liabilities due for
payment
Trade and other payable
301,800
241,661
Total contractual outflows
301,800
241,661
Financial assets cash
flow realisable
Cash and cash equivalents
1,167,087
3,583,741
-
-
-
-
-
-
Loans and other receivables
Held to maturity investments
Other non-interest bearing
receivables
-
-
-
-
50,427
95,264
76,533
99,840
-
-
-
-
Total anticipated inflows
1,217,514
3,679,005
Net (outflow)/inflow on financial
instruments
915,714
3,437,344
76,533
76,533
99,840
99,840
-
-
-
-
-
-
-
-
-
-
301,800
241,661
301,800
241,661
-
-
-
-
-
-
1,167,087
3,583,741
76,533
99,840
-
-
50,427
95,264
1,294,047
3,778,845
992,247
3,537,344
Market risk
Interest rate risk
The Group’s exposure to market risk primarily consist of financial risks associated with changes in interest rates as detailed below. As the level of risk is low,
the Group does not use any derivatives to hedge its exposure. Market risks are managed through cash flow forecasts and sensitivity analysis on a regular basis.
The Group is exposed to interest rate risks as it holds funds at both fixed and variable interest rates. The risk is managed through the use of cash flow
forecasts supplemented by sensitivity analysis.
The Group currently holds no amounts of borrowed funds.
Interest rate sensitivity analysis
A sensitivity analysis have been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the beginning
of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting
internally to key management personnel and represents management’s assessment of the possible change in interest rates.
interest rate risk
Year ended 30 June 2015
+/- 0.5% in interest rates
Year ended 30 June 2014
+/- 0.5% in interest rates
There have been no changes in any methods or assumptions used to prepare the above analysis from the previous year.
Consolidated
Profit
$
5,835
17,919
Equity
$
5,835
17,919
47
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2014
Note 26 Financial risk management (continued)
Fair value
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at cost less any accumulated impairments in the
financial statements approximates their fair values.
The fair values of financial assets and financial liabilities are determined as follows:
• Holdings in unlisted shares are measured at cost less any impairments. The directors consider that no other measure could be used reliably;
• Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.
Fair value estimation
The fair value of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented
in the Statement of Financial Position. Fair value is the amount at which an asset could be exchanged, or a liability settled between knowledgeable,
willing parties in an arm’s length transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the
amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is
extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are
obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow
analysis and other valuation techniques commonly used by market participants.
Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being
applied by the market since their initial recognition by the Group. Most of these instruments, which are carried at amortised cost (i.e. term receivables,
held-to-maturity assets), are to be held until maturity and therefore the fair value figures calculated bear little relevance to the Group.
2015
2014
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets
Cash and cash equivalents
Loans and other receivables
Other non-interest bearing receivables
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
1,167,087
76,533
50,427
1,294,047
301,800
301,800
1,167,087
76,533
50,427
1,294,047
301,800
301,800
3,583,741
99,840
95,264
3,778,845
241,661
241,661
3,583,741
99,840
95,264
3,778,845
241,661
241,661
The fair values disclosed in the above table have been determined based on the following methodologies:
Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying amount
to fair value. Trade and other payables excludes amounts provided for annual leave, which is outside the scope of AASB 139.
is equivalent
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the Statement of Financial position have been analysed and classified using a fair value hierarchy
reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:
- quoted prices in active markets for identical assets or liabilities (Level 1)
- inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from
prices) (Level 2); and
- inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
48
Notes to the Consolidated Financial Statements
For the financial year ended 30 June 2014
Note 26 Financial risk management (continued)
Consolidated
2015
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
2014
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits
Note 27 Reserves
Level 1
$
-
-
Level 2
$
Level 3
$
Total
$
1,167,087
3,583,741
-
-
1,167,087
3,583,741
Equity - settled benefits reserve
The equity-settled benefits reserve is used to recognise the fair value options issued to Directors, employees and third parties.
Balance at beginning of financial year
1,000,000 options granted at a fair value of 3.60 cents per option
2,000,000 incentive rights granted at a fair value of 0.38 cents per right to an Executive Director on 21 May 2014
750,000 options granted at a fair value of .86 cents per option on 1 January 2015
2,000,000 options granted at a fair value of .23 cents per option on 12 December 2014
850,000 options granted at a fair value of .74 cents per option on 12 December 2014
400,000 options granted at a fair value of 1.18 cents per option on 12 December 2014
Share-based payments reclassified
Fair value adjustments for options on issue
Balance at end of financial year
Note 28 Company details
Registered office of the Company:
Level 6, 412 Collins Street, Melbourne,
Victoria.
Principal place of business:
4 Bryant Street, Corryong, Victoria.
Consolidated
2015
$
371,698
-
-
6,450
4,600
6,290
4,720
(7,600)
-
2014
$
336,448
36,000
7,600
-
-
-
-
(8,350)
-
386,158
371,698
49
Directors’ Declaration
ln accordance with a resolution of the directors of Dart Mining NL, the Directors of the Company declare that:
1 the financial statements and notes, as set out on pages 19 to 49, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards which, as stated in accounting policy note 2 to the financial statements, constitutes compliance with
International Financial Reporting Standards (lFRS); and
(b) give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date of the
consolidated group:
2 in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due
and payable;
3 the directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief
Financial Officer
The Company and a wholly‐owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and
subsidiary guarantee the debts of each other.
its
At the date of this declaration, there are reasonable grounds to believe that the companies which are party to this deed of cross guarantee will be
able to meet any obligations or liabilities to which they are, or may become subject to, by virtue of the deed.
James Chirnside
Chairman
Melbourne
30 September 2015
Luke Robinson
Director
Russell Simpson
Director
50
Auditor's Report
51
Auditor’s Report
52
Auditor’s Report
ASX Addititional Information
Additional information required by the Australian Securities Exchange Ltd Listing Rules and not disclosed elsewhere in this report is as follows. The
information is current as at 26 August 2015.
Twenty largest shareholders
Rank
Name of holder
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
18
19
20
Kelvin Park Pty Ltd
Mr Russell Simpson & Mrs Elizabeth Simpson & Ms Meredith Simpson
Mr Russell M Simpson & Mrs Elizabeth V Simpson & Ms Meredith H Simpson
J P Morgan Nominees Australia Limited
Mr Paul Dominic Ferguson
Citicorp Nominees Pty Limited
W & E Maas Holdings Pty Limited
Specialised Alloys Services Pty Ltd
Mr Philip Alan Kenneth Naylor & Mrs Andrea Naylor
North East Geological Contractors Pty Ltd
J Barlow Consultants Pty Ltd
B Hochwimmer & Associates Pty Ltd
Coven-SA Ltd
Mr Duane Lawrence Hicks
Mr Colin John Morrow
Finook Pty Ltd
Granite Hills (Victoria) Pty Ltd
Mrs Sonia Patricia Thiel
Ms Jenny Lee Coad
Mr Andrew Matthew Cameron & Mrs Gweneth Marsh Cameron & Mrs Fiona Crichton Barclay
R D Boyd Pty Ltd
Total
Shares on issue
Ordinary fully paid shares
243,257,982
Substantial Shareholders
Substantial shareholders as advised to the Company are set out below:
Name
Kelvin Park Pty Ltd
R Simpson, E Simpson and M Simpson
No. of ordinary
shares held
Issued
Capital
%
29,333,334
12.06
15,670,331
8,638,203
8,678,814
7,402,630
6,332,938
6,045,000
5,750,600
4,500,000
4,459,179
3,666,666
3,250,483
3,200,000
2,820,031
2,761,926
2,315,747
2,181,546
2,000,000
2,000,000
1,844,555
1,781,719
6.44
3.55
3.57
3.04
2.60
2.49
2.36
1.85
1.83
1.51
1.34
1.32
1.16
1.14
0.95
0.90
0.82
0.82
0.76
0.73
124,633,702
51.24
No. of Ordinary
Shares
Percentage of
Issued Capital
29,333,334
24,408,534
12.06
9.99
53
Auditor’s Report
ASX Addititional Information
Distribution of member holdings
Size of holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total Holders
Ordinary shares
No of holders
No of shares
50
90
233
701
277
1,351
8,268
345,997
2,031,545
28,354,398
212,517,774
243,257,982
The number of security investors holding less than a marketable parcel of securities is 761 with a combined total of 10,734,809 securities.
Voting Rights
All shares carry one vote per share without restriction.
Tenement schedule
Tenement number
Licensed holder
Name & region of subject of licence
EL 4724
EL 4726
EL 5467
EL 5468
EL 5058
EL 5194
ML 5559
Dart Mining NL
Buckland, North-east Victoria including Fairleys prospect
Dart Mining NL
Dart, North-east Victoria including Mountain View, Elliot, Morgan and Unicorn prospects
Dart Mining NL
McCormack’s, North-east Victoria.
Dart Mining NL
Upper Murray, North-east Victoria.
Dart Mining NL
Cudgewa and Koetong, North-east Victoria abutting Dart EL
Dart Mining NL
Mt. Alfred, North-east Victoria abutting Dart EL
Dart Mining NL
Mountain View, North-east Victoria
54